COVERED PUT	LONG STRADDLE
About Strategy	Covered Put Option Strategy  This strategy is exactly opposite to Covered Call Strategy. Here the investor is neutral or moderately bearish in nature and wants to take advantage of the price fall in the near future. The trader will short one lot of stock future. Now the trader will short ATM Put Option, the option strike price will be his exit price. If the prices rally above the strike price, the Read more..	Long Straddle Option Strategy  Straddle is neither bullish nor bearish strategy; it is a market neutral strategy. Here a trader wishes to take advantage of the volatility in the market. This strategy involves buying of one Call option and one Put option of the same strike price, same expiry date and of the same underlying asset. Now a trader is bound to make profits once stock moves in either direc .. Read more..

COVERED PUT Vs LONG STRADDLE - Details

	COVERED PUT	LONG STRADDLE
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option) + Underlying	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Futures Price + Premium Received	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

COVERED PUT Vs LONG STRADDLE - When & How to use ?

	COVERED PUT	LONG STRADDLE
Market View	Bearish	Neutral
When to use?	The Covered Put works well when the market is moderately Bearish.	This options strategy is work well when and investor market view is bearish. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action	Sell Underlying Sell OTM Put Option	Buy Call Option, Buy Put Option
Breakeven Point	Futures Price + Premium Received	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

COVERED PUT Vs LONG STRADDLE - Risk & Reward

	COVERED PUT	LONG STRADDLE
Maximum Profit Scenario	The profit happens when the price of the underlying moves above strike price of Short Put.	Max profit is achieved when at one option is exercised.
Maximum Loss Scenario	Price of Underlying - Sale Price of Underlying - Premium Received	Maximum Loss = Net Premium Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

COVERED PUT Vs LONG STRADDLE - Strategy Pros & Cons

	COVERED PUT	LONG STRADDLE
Similar Strategies	Bear Put Spread, Bear Call Spread	Bear Put Spread
Disadvantage	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.	• There should be continuous movement of the stock and options price for this strategy to be profitable. • Time decay hurts long option if the strike price, expiration date or underlying stock are badly chosen.
Advantages	• Investors can book profit when underlying stock price drop, move sideways or rises by a small amount. • Able to generate monthly income. • Able to generate profit from fall in prices or mild increase in the prices.	• Unlimited potential beyond the breakeven point in either direction . • Book your profit from highly volatile stocks without determining the direction. • Limited risk, more profit.